{"id":337,"date":"2026-01-05T12:00:00","date_gmt":"2026-01-05T12:00:00","guid":{"rendered":"https:\/\/california.shuster.info\/?p=337"},"modified":"2026-01-05T12:00:00","modified_gmt":"2026-01-05T12:00:00","slug":"oswald-mv-transportation-paga-lmra-preemption-cba","status":"publish","type":"post","link":"https:\/\/california.shuster.info\/?p=337","title":{"rendered":"Oswald v. MV Transportation (PAGA) \u2014 N.D. Cal. dismisses companion PAGA action under LMRA preemption"},"content":{"rendered":"<div class=\"case-meta\">\n<dl>\n<dt>Case<\/dt>\n<dd>Richard Ryan Oswald v. MV Transportation, Inc., et al. (PAGA)<\/dd>\n<dt>Court<\/dt>\n<dd>U.S. District Court \u2014 Northern District of California<\/dd>\n<dt>Date Decided<\/dt>\n<dd>2026-01-05<\/dd>\n<dt>Docket No.<\/dt>\n<dd>3:25-cv-03053<\/dd>\n<dt>Status<\/dt>\n<dd>Unreported \/ Non-Citable<\/dd>\n<dt>Topics<\/dt>\n<dd>PAGA representative action; LMRA Section 301 preemption; collective bargaining agreement; California Labor Code \u00a7\u00a7 510-514; meal and rest period exemptions; commercial driver exemption; Wage Order 9; Burnside two-step test<\/dd>\n<\/dl>\n<\/div>\n<h2>Background<\/h2>\n<p>Richard Ryan Oswald drove buses for MV Transportation, Inc. on Western Contra Costa Transit Authority routes from August 2023 to November 2024 under a CBA between MV and Teamsters Local 315 effective July 1, 2023. After filing a putative class wage-and-hour suit against MV in Contra Costa County Superior Court (later removed to the Northern District), Oswald filed a parallel Private Attorneys General Act representative action in the same court asserting essentially the same California Labor Code violations on a PAGA basis.<\/p>\n<p>MV removed the PAGA action under federal-question jurisdiction, asserting that the Labor Management Relations Act \u00a7 301 completely preempts the underlying state-law claims because they require interpretation of the CBA. The court related-cased the matter to Judge Mart\u00ednez-Olgu\u00edn, who was already presiding over the original Oswald class action against MV. MV moved for judgment on the pleadings.<\/p>\n<h2>The Court&rsquo;s Holding<\/h2>\n<p>The court granted MV\u2019s motion in full, applying the same analysis it had used in the companion class action. The court took judicial notice of the CBA (publicly available, applied to Oswald, and submitted in connection with a Rule 12(c) motion based on LMRA preemption) and Oswald\u2019s commercial driver\u2019s license. It then applied the Ninth Circuit\u2019s two-step <em>Burnside<\/em>\/<em>Curtis<\/em> framework to each Labor Code claim.<\/p>\n<p>For overtime, Labor Code \u00a7 514 supplied a CBA-based exemption: the MV\/Teamsters CBA expressly provided wages, hours, working conditions, premium overtime rates, and a base wage well above 130% of the California minimum wage in 2023, 2024, and 2025. Under <em>Curtis v. Irwin Industries<\/em>, when \u00a7 514 is satisfied, the right to overtime exists solely under the CBA and is preempted under Section 301.<\/p>\n<p>For meal periods, Labor Code \u00a7\u00a7 512(e) and 226.7(e) supply parallel exemptions for commercial drivers covered by qualifying CBAs. Article 28 of the MV\/Teamsters CBA expressly opts in. Independently, Oswald qualified as a \u201ccommercial driver\u201d because he held a Class B commercial driver\u2019s license and operated a passenger-transport vehicle, satisfying Labor Code \u00a7 512(g)(1) and Vehicle Code \u00a7\u00a7 260, 15210.<\/p>\n<p>For rest periods, Wage Order 9 \u00a7 12(C) carves out public transit bus drivers covered by qualifying CBAs. The MV\/Teamsters CBA provides 10-minute rest periods, binding arbitration, premium overtime, and 130%-plus base wages, satisfying every element.<\/p>\n<p>The remaining minimum-wage, wage-statement, deductions, timely-payment, payroll-records, waiting-time, and UCL allegations were derivative of the preempted overtime, meal, and rest period theories, and so were also preempted under <em>Chavez v. Smurfit Kappa<\/em> and similar authorities. Because all preempted claims existed only by virtue of the CBA, Oswald was required to exhaust the contractual grievance and arbitration procedure under <em>Soremekun<\/em>, <em>Truex<\/em>, and <em>14 Penn Plaza LLC v. Pyett<\/em>. He did not allege any such exhaustion.<\/p>\n<p>The court directed MV to submit a proposed judgment by January 9, 2026.<\/p>\n<h2>Key Takeaways<\/h2>\n<ul>\n<li>Filing the same wage-and-hour theories as a PAGA representative action does not avoid LMRA preemption. The Section 301 analysis turns on whether the underlying right exists solely under or substantially depends on the CBA, regardless of how the procedural vehicle is labeled.<\/li>\n<li>For unionized California bus drivers, California Labor Code \u00a7\u00a7 510\u2013514, \u00a7 226.7, and Wage Order 9 supply matching CBA-based exemptions. A complying CBA effectively switches off statutory wage-and-hour rights.<\/li>\n<li>Plaintiffs cannot use the PAGA framework to bypass the CBA\u2019s mandatory grievance and arbitration procedure when their claims are preempted under Section 301.<\/li>\n<li>Federal courts in the Ninth Circuit will routinely take judicial notice of the relevant CBA in Rule 12(c) motions premised on LMRA preemption \u2014 a defense fixture in unionized California wage-and-hour cases.<\/li>\n<\/ul>\n<h2>Why It Matters<\/h2>\n<p>Plaintiffs\u2019 counsel in California wage-and-hour litigation often file a class action and a separate PAGA representative action in tandem, hoping that even if class certification falters, PAGA penalties will provide leverage. This decision shuts down both vehicles in one move when the underlying CBA triggers the statutory exemptions: just as Section 301 preempts the class action in the companion case, it also preempts the PAGA action.<\/p>\n<p>The combined PAGA\/class result against the same plaintiff at the same employer is the new normal for unionized California transit and trucking work. Companies with mature CBAs that meet the 130%-of-minimum-wage threshold, premium overtime, binding arbitration, and explicit \u00a7 512(e) opt-in language should expect the courts to enforce that bargain. Plaintiffs hoping to pursue PAGA penalties for unionized drivers will need to identify rights that fall outside the CBA framework \u2014 for example, claims that do not require CBA interpretation under <em>Burnside<\/em>\u2019s second step.<\/p>\n<p><a href=\"https:\/\/www.courtlistener.com\/recap\/gov.uscourts.cand.448411\/gov.uscourts.cand.448411.39.0.pdf\">Read the full opinion (PDF)<\/a> &middot; <a href=\"https:\/\/www.courtlistener.com\/opinion\/10769452\/richard-ryan-oswald-v-mv-transportation-inc-et-al\/\">Court docket<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Judge Mart\u00ednez-Olgu\u00edn grants MV Transportation\u2019s motion for judgment on the pleadings in the parallel PAGA action by the same WestCAT bus driver, holding that the Section 301 preemption analysis applies just the same to a PAGA representative action as it does to a class wage-and-hour suit.<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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